City seeking 1% tax increase

Grants, cuts and new fees help close gap of $1.1 million

Published 10:06 pm, Wednesday, July 10, 2013

New fees, including a parking ticket surcharge, are the source of new revenue for the city's proposed 2013-14 budget of $13,180,879.

The city had to deal with closing a spending gap of $1.1 million resulting from a decline in property assessments, higher health insurance costs, debt service and pension payments.

Budget Director Chris Hurley said Wednesday night at the budget hearing that the gap was closed with the new fees, grants and cutting department expenditures. The proposed budget, which would take effect Aug. 1, is 4.7 percent lower that the current budget of $13,767,286.

The city doesn't have to worry about the state's 1.96 percent cap for a tax levy increase as the city's proposed levy declined by 5 percent to $6,333,634 from $6,666,737.

The city tax rate, however, will rise by 1 percent to $50.17 per $1,000 of assessed value.

No one spoke at the budget hearing.

The budget calls for hiring four additional firefighters in an effort to reduce overtime and gives all non-unionized employees a 1.5 percent raise.

The budget includes a separate one-year capital plan, which Adalian said is the first step in developing a five-year plan.

The new fees set in the budget include the parking surcharge, sidewalk and street opening permits, vacant building permits and curb cut permits. The parking ticket surcharge is projected to produce $10,000 in new revenues.

The budget also moves sewer expenses out of the general fund into a stand-alone account for the first time. In other cost saving measures, the city transferred its Civil Service Commission responsibilities to Rensselaer County and created an Administrative Service Unit to oversee human resources and purchasing.